Re falls as importers boost $ purchases

The rupee fell the most in a week on speculation importers stepped up dollar purchases to pay month-end bills. The rupee declined 0.4 per cent to 55.59 per dollar, according to data compiled by Bloomberg. It touched 55.1975 earlier, the strongest level since July 20. One-month implied volatility, a measure of exchange-rate swings used to price options, fell 30 basis points, or 0.30 percentage point, to 11.20 per cent.

Bonds ends weak
Government bonds dropped on heavy selling pressure from banks and companies.

The 8.15 per cent government security maturing in 2022 dipped to Rs 100 from 100.1925 previously, while its yield rose to 8.15 per cent from 8.12 per cent.

Call rates recover
Rates recovered on fresh demand from borrowing banks and finished at 8.05 per cent from Friday’s closing level of eight per cent.